BUSINESS LAW ASSIGNMENT

Q1.

Ans 1

1. Introduction. Biological Diversity refers to the variety of living organism, flora,

fauna that exist in the ecosystem. Biological Diversity Act 2002 has been enacted
by Govt of India based on United Nations Convention on Biological Diversity
(CBD), 1992 held at Rio De Janerio to which India is a signatory. CBD recognizes
the sovereign rights of the states to use their own biological resources. The aim of the
act is conservation of biological resources, managing its sustainable use and enabling
fair and equitable sharing benefits arising out of the use and knowledge of biological
resources with the local communities.

2. Governing Bodies. It has a three-tier structure to regulate access to biological

resources. Following committees are required to be established :-
(a) National Level – National Biodiversity Authority (NBA).
(b) State Level – State Biodiversity Boards (SBBs).
(c) Local Level – Biodiversity Management Committees (BMCs).

3. Important Features and Provision of the Biological Diversity Act 2002. The
important features and provisions are as under :-
(a) Consultation at Local Level. NBA & SBB have to consult local BMCs
for any decisions related to bio resources and related issues in that locality.
(b) Respect and protect knowledge of local communities / tribes.
(c) Protect traditional Knowledge on biodiversity.
(d) Benefits of Biological Resource. The local people are the conservers
of biological resources and its knowledge. Any benefits derived from these
resources need to be shared with local people.
(e) NBA Approval.
(i) Approval required by foreign nationals and organizations to obtain
or access biological resource/ knowledge.
(ii) Approval required by Indian scientist/ individuals for sharing or
transferring of research results to foreign nationals / organization.
(iii) Approval required by any individual within or outside India to apply
for any Intellectual Property Rights (IPR) on any invention based on
research or biological resource obtained from India.
 (f) Biological Diversity Heritage Sites.
(i) Certain areas to be declared Heritage sites to ensure
conservation and development of these areas.
(ii) Notify Heritage sites in consultation with Local bodies.
(g) Notification, Protection and Rehabilitation of threatened species to be
ensured. NBA will designate institutions as repositories for different categories
of biological resource.
(h) Formation of Committees. Respective state governments to constitute
committee as promulgated in Bio Diversity Act 2002.
(i) Biopiracy. Biopiracy to be checked.
(j) Intimation to SBBs. Indian organisations must intimate SSBs if they
wish to obtain bioresource. SBB can restrain organisations from obtaining
resources if these organisations do any action which violates conversation,
prevents sustainable use of resource and does not share benefits with the
locals.
(k) Protection of Biodiversity and Knowledge. Indian biodiversity and its
knowledge will be protected from use by foreign nationals or organization if they
do not share the benefits with local people.
(l) Biodiversity Fund. Create biodiversity fund at national, state and local
level for conservation of biodiversity.
(m) Peoples Biodiversity Register (PBR). PBR are required to be
prepared by BMC post consultation with local people. The PBRs focus is on
participatory documentation, traditional knowledge and practices. It shall
contain comprehensive information on the availability and knowledge of local
biological resources.
4. Legal Safeguards. All offences under this act are cognizable and non-
bailable.
5. Grievance Redressal. Any grievances related to benefit sharing or order of
NBA/SBB under this act shall be taken to the National Green Tribunal (NGT).
6. Conclusion. Biodiversity is an important aspect for economic and social
development of any developing nation like India. The conservation and sustainable
use of bio diversity is of critical importance for meeting food, fodder, health, water and
other needs of a growing population. Sharing of both genetic resources, Knowledge,
research and technologies are essential for sustainable development. Conservation
of biological diversity are essential for present and future generations. Besides this
law, participation by local population to include tribal people, farmers, ecologists,
villagers will help in conservation and protection of biodiversity resources and
knowledge.
Q2

Ans.

1. Introduction. The Competition Commission of India (CCI) is the regulatory

authority and oversees competition market in India. The regulatory body was
established primarily to enforce Competition Act 2002 and its Amendment act
2007.The primary objective of the CCI is to create a fair and competitive business
environment. The commission has adjudicated more than 1182 cases at the disposal
rate of 89% in antitrust cases. The commission has reviewed more than 916 cases of
merger and acquisition and have cleared cases within 30 days in most cases. The two
instances are given in succeeding paras.

Case 1: Reliance Big Entertainment Pvt Ltd vs Tamil Nadu Film Exhibitors
Association.

2. Brief of the Case.

(a) Reliance Big Entertainment had entered into an agreement with the M/s
Balaji Real Media Pvt Ltd to distribute the film “Osthi” who was the member
Tamil Nadu Film Exhibitors Association on 28 Jul 2011.The film was the Tamil
remake of Hindi Film Dabbang.
(b) Reliance Big Entertainment had entered into an agreement with M/s
SUN TV network Ltd granting Satellite rights in Nov 2011.
(c) In November 2011, it was informed that the association had decided not
to screen the said film in any of the screens of its members since the said film's
satellite rights were granted to Sun TV.
(d) Reliance Big Entertainment in its complaint had alleged that since Sun
TV owed some money to a few theatre owners the association decided to
ban all films which were either produced or distributed by Sun TV or even
the films whose satellite rights were granted to Sun TV, in order to recover
the money from the broadcaster.
(e) According to the complainant, "banning its said film in theatres in
Tamil Nadu just because the satellite rights of the said film were granted
to Sun TV was highly unfair and in contravention of the provisions of the
Act".
(f) Reliance Big Entertainment had alleged that the association indulged in
anti-competitive ways with regard to release of Osthi, the Tamil remake of
Salman Khan-starrer Dabbang.
3. Investigations. Following the allegations, the regulator had directed its
investigation arm, Director General, to probe the charges . The investigation revealed
that the decision on not screening Osthi had affected adversely distributors and
producers as they were not able to book the theatres on account of the ban by the
association.
4. Order and Punishments.
(a) In its order, CCI has held "that the impugned conduct of the opposite
party (the Tamil Nadu Theatre Owners Association) was anti-competitive in
as much as it limited/ controlled the supply/ provision of services being in
contravention of the provisions of the (Competition) Act".
(b) The Commission directed the association to cease and desist from
indulging in such anti-competitive conduct in future.
(c) Further, CCI slapped a penalty amounting to 10% of the average
turnover of the association which has been calculated as per the Income/
Receipts of the association as evidenced by Income and Expenditure
Accounts for the relevant last 3 years which were submitted by the
association.
(d) Emphasising that anti-trust laws are not an impediment to activities
of trade and professional associations, the Commission in its order said
members must be fully aware of the types of conduct these laws proscribe when
carrying out an association's programmes and activities.

Case 2: Alleged Cartelisation by Automotive Tyre Manufactures Association.

5. Brief of the Case.

(a) This case was initiated on the basis of a reference received from the
Ministry of Corporate Affairs (MCA) under Section 19(1)(b) of the Act based on
a representation made by All India Tyre Dealers Federation (AITDF) to the
MCA.
(b) It was alleged that the members of Automotive Tyre Manufacturers
Association(ATMA) namely Apollo Tyres Ltd, MRF Ltd, CEAT Ltd, JK Tyre
and Industries Ltd, Birla tyres were indulging in cartelization by acting in
concert to increase the prices of cross ply/ bias tyres variants sold by each of
them in the replacement market and to limit and control production and supply
in the said market, thereby contravening the provisions of Section 3(3)(a) and
3(3)(b) read with Section 3(1) of the Competition Act, 2002 (‘the Act’).

6. Investigations.
(a) The Commission noted that the tyre manufactures had exchanged
price-sensitive data amongst them through the platform of their
association, namely, Automotive Tyre Manufacturers Association
(ATMA), and had taken collective decisions on the prices of tyres.
(b) The Commission also found that ATMA collected and compiled
information relating to company-wise and segment-wise data (both
 monthly and cumulative) on production, domestic sales and export of tyres
on a real-time basis. The sharing of such sensitive information made the co-
ordination easier amongst the tyre manufacturers to manipulate the market.
7. Order and Punishments.
(a) The CCI held the five tyre manufacturers and ATMA guilty of
contravention of the provisions of Section 3 of the Act, which prohibits anti-
competitive agreements including cartels.
(b) The CCI imposed penalties of Rs. 425.53 crore on Apollo Tyres, Rs.
622.09 crore on MRF Ltd., Rs. 252.16 crore on CEAT Ltd, Rs. 309.95 crore
on JK Tyre and Rs. 178.33 crore on Birla Tyres, besides passing a cease
and desist order.
(c) A penalty of Rs. 0.084 crore was also imposed on ATMA. ATMA was
also directed to disengage and disassociate itself from collecting wholesale and
retail prices through the member tyre companies or otherwise.
(d) Certain individuals of the tyre companies and ATMA were held
liable for the anti-competitive conduct of their respective
companies/association in terms of the provisions of Section 48 of the Act.
Source: Press Info Bureau Post

8. Conclusion. Competition is the best means of ensuring that consumers have

access to broad range of goods and services at competitive prices. With increased
competition, producers will have incentive to innovate and specialize. This would result
in reduced costs and wider choice to consumers. A fair competition in market is
essential to achieve this objective. CCI has been endeavouring to create and
sustain fair competition in the economy that will provide a ‘level playing field’ to
the producers and make the markets work for the welfare of the consumers.
Q 3 (a)
Ans 3 (a).
1. Introduction. Samanyu and his elder sister Samaira both have decided to start
the food truck chain business across India and have decided to name it “SamSam”.
For e.g SamSam Fries, SamSam Pizza, SamSam Tacos etc. Each product has
special recipe designed by both Samaira and Samanyu. They want the word SamSam
and the recipes not to be copied/plagiarized by other food truck members. They have
approached me with queries which are clarified in subsequent paras.
2. Trade Related Aspects of Intellectual Property Rights (TRIPS). India is a
member country of World Trade Organisation (WTO). TRIPS is an international
agreement on Intellectual Property Rights (IPR) that has been signed by member
countries of the WTO. The agreement is in force since 1st Jan 1995.
3. Types of IPR. The major types of IPR include the following :-
(a) Patent.
(b) Trademarks.
(c) Copyrights.
(d) Designs.
(e) Biodiversity-Geographical Indications.
(f) Registration of designs of Semiconductors and Integrated Circuits.
(g) Trade Secrets.
4. Samaira and Samanyu are dealing with two IPRs as under :-
(a) Trademarks - SamSam.
(b) Trade Secrets – Recipes.
5. Trademarks.
(a) A trademark is any symbol or word which helps in uniquely identifying
the product or service and helps distinguish the product or service from other
products or service that are available in the market.
(b) In this case, Samaira and Samanyu have decided to introduce under the
name “SamSam”.
(c) “SamSam” is a symbol or word which uniquely identifies their product
and hence Trademark IPR is applicable.
6. Trade Secrets.
(a) According to World Intellectual Property Organisation (WIPO), any
confidential business information which provides a competitive edge may be
considered a trade secret.
(b) In this case Samaira and Samanyu have a special designed recipe,
which gives a competitive edge over other food truck owners or rivals and will
 be used by them to make profits. This makes their specially designed recipe
a Trade Secret. Hence, Trade Secret IPR is applicable.
7. Conclusion. Samaira and Samanyu need to utilize Trademark and Trade
Secret IPR safeguards to prevent their word SamSam and recipes from being copied/
plagiarised.

Q3 (b)
Ans 3 (b)
1. Introduction. After having decided on the Intellectual Property rights that they
would claim, it is important to know civil and criminal remedies for enforcement of
intellectual rights. The same is given in subsequent paras.
2. Trademarks.
(a) Trademarks are governed by the Trade Marks Act, 1999.
(b) Period of Protection.
(i) Registration valid for 10 years from date of application.
(ii) It can be renewed from time to time.
(iii) Renewed for 10 years from the date of expiry of the original
registration or last renewal of registration.
(c) Remedies/ Authority.
(i) Section 83 of Trade Marks Act, 1999 empowers Central
Government to constitute appellate board known as Intellectual
Property Appellate Board (IAPB).
(ii) IAPB is chaired by a sitting Judge or retd Judge of a High
Court or person qualified to be appointed as judge to High Court.
(iii) This board oversees the adjudication of disputes pertaining to
trademark registration, trademark assignment, grant of trademarks
etc.
(iv) IAPB hears appeals against the decisions made by Registrar
under this act.
3. Trade Secrets.
(a) Trade Secrets are not covered by any law. Article 39 of TRIPS
agreement protects trade secrets as undisclosed information. Each member
of TRIPS agreement is required to protect trade secrets and provide a standard
mechanism for protecting them.
(b) Period of Protection.
(i) No specified period.
(ii) It can be extended indefinitely. This has advantage over patents
which has fixed terms.
 (c) Remedies/ Authority.
(i) No specified authority that looks after disputes relating to trade
secrets.
(ii) Judicial system determines the requirements for obtaining the
protection of trade secret.
4. Conclusion. Samanyu and Samaira need to accordingly take necessary
actions for registering their trademark and go about setting up their business of starting
food truck chain.